“Disney’s third-quarter earnings slid 27% from a year ago as the company’s movie studio bled red ink,” TheStreet.com reports. “Disney earned $379 million, or 19 cents a share, in the quarter, compared with $516 million, or 25 cents a share, a year ago. Backing out stock options expenses, an accounting change and several other items, earnings were 20 cents a share. Analysts were forecasting 18 cents a share in the latest period. Disney said revenue rose 3% from a year ago to $7.73 billion, about $150 million short of estimates.”
TheStreet.com reports, “The main contributor to Disney’s lower earnings was its studio entertainment segment, where revenue slid 20% to $1.5 billion and the operating loss totaled $304 million before options expenses, reversing a small profit in the year-ago period. Disney blamed declining home video sales partially offset by an improvement in domestic theatrical motion picture distribution and lower film cost write-downs… Disney didn’t provide earnings guidance in its release although it did tout its ability to capitalize on new technology, citing a recent agreement with Apple to provide video content for the iPod. ‘As a modern media company Disney is well positioned to take advantage of these changes by continuing to develop strong content and leverage that content across our businesses and new technologies. Our agreement with Apple to make programming available on the iPod is a fitting example of our efforts in that regard. As the media landscape continues to change, our creative excellence and consumer focus will enable us to continue delivering benefits to shareholders.'”
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